As part of the redevelopment of 50 hectares (120 acres) of land at Darling Harbour it was proposed to build a transport link to the Sydney central business district. Sydney City Council preferred a light rail line, however in November 1985 Transport Minister Laurie Brereton announced a monorail would be built.[2] Initially operated by TNT Harbourlink, the monorail opened on 21 July 1988 after a construction period of 26 months.[3][4] The first test services ran in October 1987 on a 500-metre section at Darling Harbour.[5] TNT Harbourlink was awarded a 50-year concession until 2038.[6]

The original operation hours were to be 06:00 to midnight, but after two years of operation patronage counts were half those expected, and planned stations at Market Street (to be named Casino, as part of the gaming venue planned to be built on the site) and Harbour Street (to be named Gardenside) were not built for some time.[3]

In August 1998 TNT sold the monorail to CGEA Transport Sydney, which was owned by CGEA Transport (later renamed Connex, then Veolia Transport) (51%) and Australian Infrastructure Fund (19%), Utilities Trust of Australia (19%) and Legal & General (11%).[7][8] The latter three also owned the Sydney Light Rail Company (SLRC), which owned the Metro Light Rail (now Sydney Light Rail) on a 30.5 year concession since 1997 by the Government of New South Wales. Connex (renamed from CGEA Transport in 1999) sold its share of the monorail in early 2001 to the SLRC, but remained as the operator of the monorail.[9] As a result, SLRC owned both the monorail and light rail and combined with CGEA Transport to form Metro Transport Sydney.

The Government of New South Wales bought both the monorail and the light rail service from Metro Transport Sydney on 23 March 2012 to enable it to extend the light rail system without having to negotiate with the private owners, and to remove the monorail from the area near Haymarket required for the expanded Sydney Convention and Exhibition Centre. Veolia Transport Sydney continued to operate the light rail and monorail after the government takeover.

The monorail ceased operating on 30 June 2013 and all sections of track and some of the stations have been dismantled.[11][12] Around 70 million passenger journeys were made on the line during its lifetime.[13] Two carriages and 10 metres of track have been preserved at the Powerhouse Museum.[14][15] Two carriages are being used as meeting rooms at Google's Pyrmont offices.[16][17]

The track was a steel box girder of 94 centimetres width, raised at a minimum height of 5.5 metres from ground level on steel columns 20 to 40 metres apart. The minimum curve radius was 20 metres and the maximum gradient 4.4% uphill and 6.5% downhill.

Power was supplied at 500 VAC to power the train, via a sheathed conductor below the running plate of the track. A control rail was also provided for train control, and a generator provided to clear trains from the track in emergencies. The train control and maintenance facility is located between Convention and Paddy's Market stations, where a traverser moved trains in and out of service.[3]

Each station stop took 40 seconds, including the time to decelerate, board passengers, and accelerate again. A complete circuit of the route took 12 minutes. It was originally intended for the system to operate automatically, but after a number of breakdowns soon after opening, it was decided to retain drivers, who occupied the first car of each train.[3]

Payment for single journeys was made by tokens inserted into the turnstile. For multiple journeys, customers could purchase pre-paid cards. The first card type was based on magnetic stripe technology and called the METROCard. Shortly before the closure of the Monorail, a new contactless card was introduced called the smart.

Delivered in 1987, six trains of seven carriages were built by Von Roll Holding to the Type III specification. Each seated 48 passengers, with the driver occupying the leading carriage. (They were designed to seat 56, using all seven carriages.) The first was displayed at the Trans Public Show in Geneva, Switzerland in May 1987.[18]

Set 1 was stored following a significant collision between it and Set 4 in early 2010. The last carriage in Set 1 was removed from the set, and used to replace the damaged last carriage in Set 4. When operations ceased in June 2013, sets 2 - 6 were operational.

Located inside the One Dixon Street shopping centre, opened in 2001 as Garden Plaza it closed on 26 July 2004,[20] and then reopened as Chinatown station on 18 December 2006[21] By 2012 the station was unmanned and only open between 07:00 and 09:00 on weekdays only,[22] with the station entrance locked outside these hours[23]

Traverser and Maintenance & Control Facilities with the Dulwich Hill Line passing underneath in July 2013

The six monorail units were maintained in a purpose-built facility in Pyrmont. A traverser allowed monorail cars to be removed from the main track for maintenance or stabling. Maintenance of track and stations was conducted at night with special vehicles, 'Buggy' and 'Mule'.

The facility also housed the Control Room (located above the maintenance area), as well as administration and staff amenities.

The decision to build the monorail over other forms of rail (e.g. light rail) was in the eyes of many a political decision. Light rail would have been $20 million cheaper to build, service more passengers per hour and cost 40% less for a ticket, but the monorail system prevailed.[24]

On Thursday, 28 July 1988 an electrical fault caused the system to cease operating. Fifty passengers were stranded in carriages for two hours between 3:50 - 5:50 pm. TNT Harbourlink was criticised for failing to call emergency services until 5:40 - by the time the fire brigade arrived at the scene, the passengers were en route to disembarking at a station.[25]

In July 1992 monorail services were suspended due to a fire in a wool store building which caused a wall to collapse 'within metres' of TNT Harbourlink's central control room offices. [26]

On 27 February 2010 at approximately 16:00, two monorail trains collided at the Darling Park station resulting in hospitalisation of four people.[27][28]

On 24 September 2012 just before 14:00, an Ausgrid failure in a local underground cable led to a complete shutdown of the system resulting in the need for cherry-pickers to come to rescue approximately 100 stranded passengers, a process which took several hours. It was the first time since 2000 that Fire and Rescue NSW had to be called to help people from the line.[29]

Regarding the removal, the Transport for New South Wales released a document called "Monorail Removal Project Interpretation Strategy" in July 2013. In Volume I part 3.5 "Decommissioning the monorail", three quotes from ‘Government Buys Light Rail Company: Monorail To Be Pulled Down’, the media release by PremierBarry O’Farrell on 23 March 2012 are provided.[30]

“This is good news for Sydney - it delivers certainty for business wanting to invest in the Darling Harbour precinct and allows the efficient development of the light rail network,” Mr O’Farrell said.

“The monorail is not integrated with Sydney’s wider public transport network and has never been truly embraced by the community. While it has been a controversial part of Sydney’s history for more than 20 years, the monorail is reaching the end of its economic life and the NSW Government cannot justify costly upgrades like the purchase of new vehicles required to keep it running.

“This decision paves the way for the development of a world class Sydney International Convention, Exhibition and Entertainment Precinct as the NSW Government gets on with the job of making NSW number one again.”

Deputy Mayor of Hobart, Alderman, Ron Christie unsuccessfully asked the NSW government to donate the monorail to Hobart to allow it to be used on a route from the CBD to the northern suburbs.[31][32]Google purchased two carriages for use as meeting rooms at its Pyrmont office.[33][34][35]

The monorail was demolished in 2013.[11] Sixty steel beams were recycled to build a temporary bridge to take Brookhollow Avenue over Norwest station during its construction between 2014 and 2017.[36][37] The temporary bridge allowed the station to be dug underneath Brookhollow Avenue, allowing the road to be closed for only a few months instead of three years as originally proposed. The bridge was dismantled in 2017 as the final station structure was being built.

In January 2015, 22 carriages were put up for sale on Gumtree Australia at $3,000 per carriage.[38] Many of these carriages were subsequently sold to an Australian expat now living in Taiwan. One was sold to a pair of radio hosts. Four, which comprise the only set of carriages preserved with all running gear that includes both a front and a rear carriage as well as middle carriages, other than the full train preserved by the Sydney Electric Train Society, were sold to a Sydney resident who plans to restore them to running condition.[39]